Sell: Accenture PLC (NYSE: ACN)
We decided to sell our position in ACN to manage execution risk and free up capital. While the firm remains an IT services powerhouse, macroeconomic pressures and shifting priorities have severely affected corporate IT budgets. More importantly, the rapid rise of Generative AI is actively disrupting their business model, cannibalizing their legacy “billable hour” consulting work as clients aggressively scrutinize fees. While they are trying to pivot to outcome-based AI contracts, the transition is painful and slow. Although the stock has suffered a steep valuation reset, earnings estimates continue to trend downward, and we would rather deploy capital where there is higher conviction growth at a reasonable price.
Buy: Nvidia Corp (NASDAQ: NVDA)
We added NVDA to our portfolio because they are the indispensable architect of the AI super-cycle. Instead of just selling processors, Nvidia designs the entire vertical platform—integrating advanced chips, high-speed networking, and a dominant software ecosystem (CUDA) that makes it nearly impossible for developers to leave. This allows them to capture the lion’s share of the tech capital expenditure boom, leading to exceptional free cash flow margins. With the stock’s forward valuation compressing to a highly reasonable 20x P/E range (below the broad market), we believe its massive growth runway is being heavily discounted ahead of the critical Blackwell and Vera Rubin product rollouts.
